By Pratap John
Chief Business Reporter
Qatar Petroleum and Shell have sold the first commercial shipment of base oil from the Pearl gas-to-liquids (GTL) plant at Ras Laffan.
Genmar Consul set sail with the first commercial shipment of Pearl GTL base oil
The production of base oil represents the ‘next development’ in the ongoing ramp up in the first production unit (train) at the multi-billion dollar Pearl GTL project, a world scale QP/Shell joint venture.
The second train is expected to start up before end-2011 and the plant is scheduled to reach full production capacity by mid-2012, Pearl GTL said.
GTL base oils represent an ‘alternative starting point’ for the manufacture of finished lubricants, which help keep vehicle engines, gearboxes and transmissions operating smoothly.
Following the ramp up, the Pearl GTL project will be one of the world’s largest sources of lubricant base oils with the capacity to produce about 30,000 bpd, enough to fill some 225mn cars per year.
Once fully operational, Pearl GTL is expected to produce 1.6bn cu ft of gas per day from the North Field, which will be processed to deliver an expected 120,000 bpd of condensate, LPG and ethane and an expected 140,000 bpd of GTL products using Shell’s unique technological and project management capabilities.
HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada, said, “I am pleased with progress in the Pearl GTL project, which offers Qatar an opportunity to further diversify its revenues from the North Field gas resources. The production of base oil from the facility is yet another achievement towards cementing Qatar’s global position as the premier supplier of quality GTL products.”
Royal Dutch Shell chief executive officer Peter Voser said, “This shipment is another milestone in our partnership with Qatar Petroleum to deliver the world’s largest GTL plant. The manufacture of high quality base oils and other products from natural gas demonstrates the depth of our technological expertise, while our ability to market products to global customers through Shell Lubricants shows the value of our integrated business model. Pearl’s success to date would not have been possible without the partnership and support we enjoy with Qatar and QP, and I look forward to the plant reaching full production capacity next year.”
Shell is the operator of the Pearl GTL plant, which is being developed under a development and production sharing agreement (DPSA) with the Government of Qatar.
At the peak of construction, the Pearl GTL project employed 52,000 workers as major construction was completed by 2010-end.
On March 23, gas began flowing from wells 60km offshore, and then the gas processing plant began producing condensate, LPG and sulphur.
The plant, which employs Shell proprietary technology, sold the first commercial cargo of high quality gasoil in June.
Pearl GTL is expected to produce a number of high-quality GTL products for sale in markets around the world: GTL kerosene for blending into a cleaner burning aviation fuel; GTL gasoil, a cleaner-burning diesel-type automotive fuel; GTL base oils for premium lubricants; GTL normal paraffin for detergents; and GTL naphtha, a high-paraffin feedstock for the petrochemical industry.
